R&D, Group 1 oils shift keeps Nynas busy

STOCKHOLM—Nynas A.B. has plenty of initiatives to keep it busy in the near future, including a continued emphasis on research and development, and also dealing with the need to reformulate as the trend toward a reduced supply of Group 1 oils accelerates.

In addition, the Stockholm-based firm recently added an advanced video extensometer at its Nynas Rubber Compounding Lab in Nynashamn, Sweden. Nynas said the new equipment is a complement to its tensile testing machine, and can help monitor the true extension of the test sample, giving more details on the tensile properties of the rubber material.

That gives the maker of process oils for the tire and rubber industry optical mapping of the tensile behavior from start until it breaks, without having any physical contact with the test specimen. The company said the extensometer makes it possible to show how different process oils affect the tensile properties of the rubber materials.

"In the rubber lab we are able to compound, develop and analyze rubber material on our own," Nynas said in answers to emailed questions. "We think it helps in better understanding our customers' needs and developing new products, as we can analyze experimental products already in rubber compounds before bringing them to the market. It also is a powerful tool to do development and cross-check findings with our customers."

Nynas didn't reveal its investment in the new equipment, which it said is part of its ongoing emphasis on R&D. The firm said that since it was established in 1928, the company has placed a high value on learning more about the composition of its products and analyzing how they perform in their respective applications.

With regard to its rubber process oil business, the company said when it develops new products it always is trying to solve a problem or support a direction the tire and rubber industry is moving. And today one of the major areas of development focuses on sustainability.

Its mineral oil-based portfolio for many years has addressed the need to reduce rolling resistance in tires, as measured by the reduction of carbon dioxide emissions. But the firm said what is new is an increased interest in the development of alternative solutions.

On that front, it said one of its new products, the Nytex-brand Bio 6200, combines the best of two worlds: It brings along the properties of its conventional products and combines them with a renewable feedstock solution.

"Being on the forefront of research is very important for us," Nynas said, "as it enables us to stay and become trusted partners with our customers, supporting them in their solutions of the future."

Even during the Swedish company's financial reorganization process, which began in November 2019 and is expected to conclude Jan. 18, it was optimistic that there would be a positive outcome.

"So we wanted to keep the R&D work at the same level, if not increasing supporting the work around the new products and customers, to make sure we keep our position in the market," Nynas said.

Group 1 trend continues

Nynas said the long-term trend of a reduced supply of Group 1 oils in the refinery business keeps gaining speed, meaning formulators need to consider Group 1 replacements for a variety of applications, including process oils. The firm said Group 1 represented about 57 percent of base oil production in 2011, but that dropped to 37 percent in 2019.

Group 1, or naphthenic refineries, historically had supplied rubber process oils, which needed something technically different than oils produced at Group 2 and 3 refineries, which are driven by automotive engine oils and also focus on lubricating oils.

"The reasons behind this shift are primarily refinery economics, new capacity investments in Group 2 and 3 refineries, as well as stricter performance demands from the automotive industry," said Gaia Franzolin, a Nynas marketing director.

When the tire industry had to move away from highly aromatic oils—essentially a byproduct of Group 1 oil production, called an aromatic extract—back in 2010, it was a big change, according to Nynas. Beyond naphthenic solutions, the industry adapted solutions like treated distillate aromatic extract and residual aromatic extract, with the feedstocks still coming from Group 1 refineries.

"In a way, all these Group 1-based tire oils are not the masters of their own destiny. They are upgraded side streams, not the main product of the refinery, bringing additional revenue but not being the core of the business," Nynas said. "The core of the business, production and marketing of Group 1 base oils, is now under heavy pressure from Group 2-type of products. This may also lead to supply disruptions for the side streams and may give rise to questions around supply security."

The process oil firm said all of its existing conventional products going into the tire industry are well-known in the market, and exhibit high performance, consistency and high quality. It said the name of its flagship product, Nytec 4700, even has been used as the generic term for naphthenic tire and rubber oils.

"Based on our already existing production platform, having an internal backup with two refineries of the same setup, we are well positioned to address the growing demand that we expect to come," Nynas said.

Going forward, the firm said it would look to strengthen its position among the top-tier suppliers of tire and rubber oils, while coming up with new solutions like its Nytex Bio 6200 sustainable offering.